Traders will be glued to the web Thursday night as thousands of cancer studies go online. What’s the trade as these studies potentially send shock waves through biotech stocks on Friday morning?
On Thursday at 9 pm ET the American Society of Clinical Oncology also known as ASCO is putting nearly 5,000 studies on its website all at once, explains CNBC Pharmaceuticals Reporter Mike Huckman on his blog“Pharma’s Market”.
The data could move a whole bunch of stocks Friday including Genentech (DNA),Celgene (CELG), Imclone (IMCL),Bristol (BMY), Glaxo(GSK) and Lilly (LLY), just to name a handful, he says.
Although it may seem like an odd way to distribute the information, ASCO is attempting to prevent what some consider insider trading.
In years' past ASCO has sent out a big, heavy book with all the data to approximately 25,000 of its member doctors as well as select reporters. But then investors would try to game the system and get some of those oncologists to hand over the book or tell them what's in it. Subsequently those alleged leaks manifested themselves in trading activity, explains Huckman.
Traders, which stocks do you likes best?
I’d keep an eye on Celgene (CELG), counsels Pete Najarian. Also watch Medarex (MEDX) and Genentech (DNA).